Claims of Award- Holder deemed extinguished on Approval of Resolution Plan under IBC Reiterating the views of Supreme Court in Committee of Creditors of Essar Steel India Limited vs. Satish Kumar Gupta; (2020) 8 SCC 531, the Calcutta High Court in Sirpur Paper Mills Ltd. V. IK Merchants Pvt. Ltd. held that, the claim of the Award-holder who was an operational creditor has been extinguished upon approval of the Resolution Plan under Section 31 of the IBC and held that the proceedings under Sec.34 of the Arbitration and Conciliation Act, 1996 were rendered infructuous. The pre-existing and undecided claims which have not featured in the collation of claims and consequent consideration by the Resolution Professional shall be treated as extinguished upon approval of the Resolution Plan under Section 31 of the IBC. This can be seen as a necessary and an inevitable fallout of the IBC in order to prevent, in the words of the Supreme Court, a “hydra head popping up” and rendering uncertain the running of the business of a corporate debtor by a successful resolution applicant. The Hon’ble Court held that, “an operational creditor who fails to lodge a claim in the CIRP literally missed boarding the claims-bus for chasing the fruits of an Award even where a challenge to the Award is pending in a Civil Court.” Reddy & Reddy Law Firm has a forte in handling matters related to Commercial and Corporate Laws. They have an experienced team of lawyers ready to assist in all your disputes.